Exercise 183 In September 2016, the budget committee of Jason Company assembles

Question

Exercise 183

In September 2016, the budget committee of Jason Company assembles the following data:

Prepare the budgeted income statement for October through gross profit on sales, including a cost of goods sold schedule.

1. Expected Sales October $1,800,000 November 1,700,000 December 1,600,000 2. Cost of goods sold is expected to be 60% of sales. 3. Desired ending merchandise inventory is 20% of the next month's cost of goods sold. 4. The beginning inventory at October 1 will be the desired amount.

Explanation / Answer

Sales 1800000 Cost of Goods Sold: Inventory, October 1 216000 Purchases 1068000 Cost of Goods Available for Sale 1284000 Less: Inventory, October 31 204000 Cost of Goods Sold 1080000 Gross Profit / (Loss)   720000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.